Every penny counts….. it’s common sense!

Save.  Save.  Save….

Be frugal…… and though some may find that to be not a good thing……  It is!!!!!

Inflation is staggering.  Everything has risen in cost to us, so the alternative is to penny pinch.  Do not buy what is not truly needed.  There are some obvious ways to save…… no eating out with the exception of maybe birthdays or anniversaries.  Stop take out meals as well as coffee stops.  Meals (and coffee) made at home are far cheaper.  Do this for a month and see the difference in money remaining in your budget at the end of the month.

With gas prices so high, make a list of errands and do all in one trip, stopping at the grocers, bank, library, gas station etc.

Cut out the cable…… there are so many things to stream these days (and with so many things to see) that with just 2 streaming companies, there will be more than enough for the whole family to enjoy.  And most everyone has a mobile phone, so what is the reason to keep the landline?…. the ‘bundle’ they use for that excuse is a very costly bill for you (with numerous stations you don’t watch….ever!  So cut the cord with the cable company. The internet is needed, so only get that.  The bill for just internet and 2 (or even 3) streaming services is far less than your cable bill.

Don’t waste food.  Eat leftovers…. or freeze for another night you’re pinched for time cooking.

Cut back or out of gift giving……. Most people will be fine with that, in fact grateful you made the suggestion.

These are only a few of the ‘Common Cents’ things you can do during these times.

And don’t be fooled by those who say that prices will go back down……..   It just won’t happen!

Are you paying yourself first???

We’re almost halfway through the year and, hopefully, you’ve been staying within your budget, paying all your bills on time, in full, and……Saving!!

Probably the first savings account to have ready is the ‘Emergency Fund Account’….. this is self explanatory.  If an emergency arises, you’ll have the money set aside to pay for it without trying to add it into your budget.

The next two savings accounts sort of go hand in hand….. The 6-9 month (eventually 12 month) Reserve Savings Account and the other is your Retirement Account(s).

Again self explanatory….. the Reserve Savings Account is there should you be out of work for an extended period of time with no income.  If you are on either workers comp or unemployment benefits, then this account is there only as a supplement to that and used for the gap that they don’t cover.  It is not for entertainment or take out etc….. just for necessities.

And the Retirement Account(s) are set aside now….for the future…. when you are no longer working.  Most can’t be touched before 59 1/2 years of age.  So until that time, they ‘do their thing’, gather interest, gain in profit etc.  At age 72 you’ll need to begin taking your RMD (Required Minimum Distribution), required by Uncle Sam….he wants his share.  If you neglect having this set up and taking the minimum out, there will be a stiff penalty and additional taxes to pay.

So, staying within your budget is imperative, as well as saving as much as you possibly can.

It’s Common Sense !!!!!     Save every cent you can!!!!

You are now ‘Legal’ …..

Turning 18 is an exciting time for most…… You have graduated or will soon graduate from high school and for those who will be starting college there will be (or have been) tours of college campuses and choices to make.

You may have received one or more scholarships to help defray the cost of your college education. Or, the cost may be yours to pay.  At 18 you are now responsible for your own debts.

Signing on the dotted line means the debt is yours to pay…. so getting a loan at the lowest interest rate possible is a must.  There will be specifics….. length of loan as well as monthly payments and due dates…. It is imperative that you adhere to the payment schedule so you won’t fall behind and then have more debt in the form of added interest charges and late fees.

Those who opt to forgo college and join the work force should begin a budget to take care of any expenses.  Do not….. i repeat….. do not buy what you can’t afford to pay when the bill comes in.  Doing this will get you into a financial hole which can take years to crawl out of.

Which ever path you choose, choose wisely.  And begin right away to pay your debts on time and in full so you will never incur added debt.

How would you handle a cash windfall?

First, do not….. I repeat…… do not let it fall through your fingers!  You will regret being foolish.

So that you know where you are with paying down your debts, put the windfall into a new checking account.  Doing so will allow you to see at a glance your payments towards those debts and also how well you’re doing at getting them all down to zero.

Make a list of all your debts….. every one of them…… then put them in order of amounts with the smallest amount first, largest last.

Next check the interest rate you’re paying for each, and put those in a second list with the highest rate first.

Pay the smallest debts first to get them completely off the list(s).  And don’t use that institution again.

Now, call the other institutions to see if you can lower the interest rate on your account and ask if they’ll work with you to pay it off quickly.  Also ask if there is any pre-payment fee…. most will say no, but it’s best to ask.  There is no need to mention to them that you’re working with other debts.

Have them direct withdraw the money from the new checking account….or you can write a check (but be disciplined each month and don’t be late with the payment).

Once your debts are paid off, and your debt free, put what is left in savings and continue adding to that savings on a regular basis.

Remember, ALWAYS pay yourself first!!

First things first!!!

It’s very important to prioritize when paying your bills.  If you don’t, it is not only foolish, but costly in so many ways.

The first thing to do is write down what your total income is….. then make a list of your expenses….. all….of….them!  Now, put that list in order or importance…..

Rent/mortgage, food, utilities, medical, car payments, insurance(s), etc.  The order is important because you need a roof over your head, you need food, and warmth and light. You need to stay healthy, and have transportation to/from work. You need car/life insurance.

Most anything beyond that can be either cut down or eliminated completely.

But……. out of the amount of money that is remaining, the first thing is to SAVE!!! SAVE!!! SAVE!!!

Set aside savings first, then if any ‘fill ins’ are needed, they come last.

If you neglect this method of budgeting, you will find that you will be overspending, on things you do not need, things that you can live without.

Learn to be frugal……. you won’t be sorry.  Do this for your family, for yourself.

Make sure you’re both on the same financial page….

Since finances are always a bone of contention at some point during a marriage, before you tie the knot is when you should seriously discuss finances to make sure you’re both on the same page.

If one is a spender and the other a saver, it is a bad idea to move forward with plans until you each put all your debts, accounts, and how you handle them out in the open.  Don’t hold anything back…. no secrets…. or you will be found out sometime down the road.  Better to tell all now, and if you spend /or save differently, budget differently, pay bills differently, now is the time to bare all.

You both need to be on the same page with finances.  If one has no debt and the other has a lot (or staggering debt), now is the time to find out and hold off on the big day until, and if, the debt is paid off.

After all, once you say ‘I do”, their debt automatically becomes yours!  And, would of course, bring down your credit score.

Also, if one can handle money and budgets better than the other, then that one can oversee bill paying, but the other should always be included so that he/she will also know where the money goes (and hopefully learn how to handle money and bill paying properly.

The idea is to know about the other persons finances before any wedding day plans are made.

Living within your income is a must!

Back in the day there were no credit cards, no debit cards, just cash.  That meant that if you didn’t have the cash to buy something, you walked out of the store without the item.  Easy.

Then along came credit cards.  If you learned how to use them properly right from the start, they could be an asset to you.

But……

If you used them the wrong way…… that is, buying an item then paying for it over several months….. that’s the wrong way…… because it cost you not only for the item, but for the finance charges as well, and, if you were late with the payment(s), there were also late fees.

All substantial costly charges to you. So, in fact, you might pay two, three or more times the cost of the item you ‘wanted’.

Using a credit card in this manner will get you into a financial hole you could take years to get out of, all the while paying staggering financial fees to do so.

This method of paying is not the way to use a credit card.Use your credit card….only…..if you know you have the money to pay for the item(s) ready and waiting when the bill comes in.

This is the ONLY way to use a credit card!

If you don’t have the money to pay for it, don’t buy it!

Make a list of things you do need….. rent/mortgage, utilities, food, medical insurance, car payments etc.  Notice that the list doesn’t include incidentals….. eating out, entertainment, gift giving etc

Using the figures needed for each item listed, add the figures….. does your income allow for payment of these essentials?

With the remaining figure, save half…. start or add to an ’emergency fund’, or a 6-9 month ‘loss of income account, or a retirement account.  These are essential so that should you need new tires, or a dentist visit, or a plumbing emergency, the money is there to cover it.

The 6-9 month loss of income account is just that….. should you lose your job, or be out of work for a time, the money is set aside for the necessities, (rent, utilities, etc)…. not…. eating out, or entertainment.  Just. The. Necessities.

Being able to stay within your budget…… (No debt)…… is your goal…

It takes discipline, but it can be done.

Get started.

Remember….. PAY YOURSELF FIRST !!

Paying yourself first is a must….. it means you think enough of yourself to save for your future.

If you think that Social Security will be there for you…..think again…..  as it stands now, by 2034 those receiving Social Security will have their benefit lowered by approximately 25%.  And with so many people not working (and not putting into the Social Security System, that figure is sure to be more than a 25% cut or happen much sooner than 2034….. it’s common sense.

That said, it’s imperative you pay yourself first.

And, you need to get rid of your outstanding debt.  Pay it all off so that you are debt free with only the monthly bills to pay.  Doing this means you’re not paying any finance charges, thus saving money there…… a no brainer.

Being debt free is a great feeling…… it leaves you financially stress free.

Buying only what you know you can pay for – in full – when the bill comes due is the only way to handle purchases.  So, if you can’t pay for it, don’t buy it.

You may need to squander a bit until you get it all paid off, but in the end, you’ll be so much happier.

Pay Yourself First !!!!

This is a must if you are (or want to be) a serious saver!

Try for 10% of your pay, but if that’s not possible yet then try for 9%.

The idea is to save as much as you possibly can from your paycheck before you start to pay your expenses.  This will mean that while your savings is growing, you are being more careful with what you have left to spend on essentials.

Keeping your savings accounts separate is essential too.  It will keep you focused on what you have saved in each (as they all will need to be at different levels).

You’ll have to decide what your plans are for the future (at least the next 5 years), and what you’d need in money to get to those goals.

You may want to save for college or a home or car…. and don’t forget a retirement account (that time of your life creeps up much quicker than you think)!

Whatever your goals, start saving…… seriously saving.  You have only you to depend on to do this.

It is why you need to think ahead…. set goals….. and start saving to make those goals reality.